Auto Industry Has Its Fingers Crossed for Trump's $1 Trillion Infrastructure Plan: Toyota Exec

Steph Willems
by Steph Willems

As automakers dial back sales projections in a year that’s seen a rough start, the industry could be holding out hope for a legislative solution to lagging demand.

Toyota North America CEO Jim Lentz made this claim during the opening of the company’s expanded Ann Arbor research and design center on Thursday, adding that incentivizing new vehicles to draw down bulging inventories can’t continue forever. In his view, automakers are keeping extra vehicles on hand for a reason, not just because production hasn’t adjusted for slow sales.

Lentz, like other auto executives, is hoping for a sales bump in the event the Trump administration green-lights its proposed $1 trillion infrastructure plan.

The administration, which released its tax plan on April 26, is said to be readying a massive infrastucture plan — possibly fueled by an increase to the federal gas tax, which Trump has said he might support on the condition the money flows to highways. Details of the plan are coming “pretty soon,” Transportation Secretary Elaine Chao told CNBC on Monday.

Trump reportedly wants the proposal in front of Congress as soon as possible. According to Lentz, automakers want the same thing.

“If you get a $1 trillion stimulus, that could add 800,000 units,” Lentz said. “That’s one reason everyone is on the accelerator” trying to unload vehicles.

April auto sales in the U.S. fell nearly 5 percent, the fourth consecutive month of year-over-year declines. This follows a record year in which U.S. consumers snapped up 17.55 million new vehicles. For 2017, Lentz said he forecasts sales in the 17 to 17.2 million range.

While a boost to infrastructure spending could turn the tide on light-vehicles sales, Lentz knows automakers can’t keep up the current pace forever. Before long, manufacturers will be forced to decide “when is it prudent to lift off the accelerator,” he said, adding that the current level of incentives isn’t sustainable.

[Source: Reuters] [Image: Toyota Motor Corporation]

Steph Willems
Steph Willems

More by Steph Willems

Comments
Join the conversation
2 of 69 comments
  • Mikedt Mikedt on May 05, 2017

    At this point Trump's 1 trillion is largely tax breaks to companies which means our highway/road infrastructure fixes will be limited to things that pay back money directly to their owners, i.e. toll roads an toll bridges. The crappy roads and bridges in your communities will continue to crumble.

  • Lynn Ellsworth Lynn Ellsworth on May 05, 2017

    Rich people travel in helicopters. Were not going to see any new roads. Trump and the conservative Republicans think anyone who earns less than $1 million a year is trash they hope will die off with their new health bill. Can you imagine any insurance companies dealing with 50 state plans the new health bill advocates? And why are we picking on insurance companies? What about hospital conglomerates, multi-million dollar salaries for hospital administrators, high drug prices, outrageous medical equipment costs, no sharing among hospitals - every hospital conglomerate buys every new device?

  • Ronin The very asking of the question "Are Plug-In Hybrids the Future?" is an interesting one. Because just 2 or 3 years ago we'd be asking- no, asserting- that E cars are the future. We're no longer asking that question.
  • Peter Benn There apparently were some K-code 4-dr sedan Fairlanes. Collectible Automobile Apr 2024 has found a '63 500 with HD 3/spd.
  • Mia Hey there!I recently stumbled upon the Crack Eraser DIY Windshield Repair Kit (check it out here: https://crackeraser.com/collections/diy-windshield-repair-kits) and decided to give it a shot on a small chip in my windshield. I have to say, it worked like a charm! Super easy to use, and it saved me a trip to the professionals. If you're dealing with a similar issue, this kit is definitely worth considering. 😊
  • Rust-MyEnemy Whoa, what the hell is wrong with Jalop1991 and his condescension? It's as if he's employed by Big Plug-In or something."I've seen plenty of your types on the forums....."Dunno what that means, but I'm not dead keen on being regarded as "A type" by a complete stranger"" I'm guessing you've never actually calculated by hand the miles you've driven against the quantity of gas used--which is your actual miles per gallon."Guess again. Why the hell would you even say that? Yes, I worked it out. Fill-to-fill, based on gas station receipts. And it showed me that a Vauxhall Astra PHEV, starting out with a fully charged PHEV battery, in Hybrid mode, on my long (234-mile) daily motorway daily commute, never, over several months, ever matched or beat the economy of the regular hybrid Honda Civic that I ran for a similar amount of time (circa 5000 miles)."You don't use gasoline at all for 30-40 miles as you use exclusively battery power, then your vehicle is a pure hybrid. Over 234 miles, you will have used whatever gas the engine used for 200 of those miles."At least you're right on that. In hybrid mode, though, the Astra was using battery power when it wasn't at all appropriate. The petrol engine very rarely chimed in when battery power was on tap, and as a result, the EV-mode range quickly disappeared. The regular hybrid Civic, though, deployed its very small electric reserves (which are used up quickly but restore themselves promptly), much more wisely. Such as when on a trailing throttle or on a downward grade, or when in stop-start traffic. As a result, at the end of my 234 miles, the Civic had used less gas than the Astra. Moreover, I hadn't had to pay for the electricity in its battery.I look forward to you arguing that what actually happened isn't what actually happened, but I was there and you were not."Regardless, that you don't understand it appears not to have stopped you from pontificating on it. Please, do us all a favor--don't vote."You really are quite unpleasant, aren't you. But thanks for the advice.
  • Tassos Jong-iL Electric vehicles are mandated by 2020 in One Korea. We are ahead of the time.
Next